Fitzroys Weekly Wrap - 14th December 2018

Posted on 14th December 2018

Retail Sale, 119 Burgundy Street, HeidelbergA local investor acquired the 223sqm commercial building, which has a pharmacy on the ground floor and two office suites on the upper levels, for $1.82 million. It has a council car park at the rear and sold at a land rate of $9,387/sqm.Retail Sale, Shop 2, 293-297 Bay Street, BrightonThe corner arcade investment sold for $762,500, at a building rate of $14,660 per sqm, with a new 5+5-year lease to a beauty salon.Retail Sale, 166 Russell Street, MelbourneHarrolds founder John Poulakis sold the recently refurbished 295sqm four-level building for $6.65 million. It is on a 136sqm site and has a lease to restaurant David’s Malatang with a passing income of $227,165pa.

Retail Sale, Shop 11, 530 Little Collins Street, MelbourneA local investor picked up the 13sqm newsagency for $508,000. The shop is on the ground floor of the Exchange Tower and has a five-year lease until August 2020 with a five-year option returning $47,896pa plus GST.

Retail Sale, 202 Sladen Street, CranbourneThe Petstock warehouse and showroom of 835sqm is on a 2,125sqm site on two titles, and sold for $2.6 million with a new 12-year lease plus options returning $140,435pa net.

Retail Sale, 168 Swan Street, RichmondOffered for the first time in more than 70 years, the 87sqm jewellery shop sold for $1.681 million with a net annual income of $50,000 plus outgoings and GST.

Retail Sale, 640 High Street, ThornburyThe premises of Coffee Hit roastery and café, at the base of a 66-apartment complex, sold for $1.3 million with a 10-year lease that returns $78,000pa plus outgoings and GST.

Retail Sale, Shop 3, 5 High Street, PrestonAn Asia-based investor snapped up the strata-titled I Love Dumplings Express eatery of 163sqm for $1.020 million, located within the Nine High mixed-use development. It sold at a 5.3% yield with a 5+5+5-year lease from January 2018.

Retail Sale, 332 Auburn Road, HawthornThe vacant shop and dwelling of 170sqm is on a 167sqm site zoned Commercial 1 and changed hands for $965,000.

Retail Sale, 633 Burwood Road, HawthornThe vacant two-level building of 86sqm sold for $940,000. It is on a 133sqm site with three parking spaces.

Retail Sale, 150 Springfield Road, BlackburnThe single-level retail/office space of 130sqm is on a 183sqm site and sold with vacant possession for $620,000.

Retail Lease, 352 Chapel Street, South YarraRed Chilli Group leased the 320sqm two-level, double-fronted building at $165,000pa net, on a seven-year deal with a seven-year option, for a new Chinese restaurant.

Specialised Asset Sale, 22-24 Ferntree Gully Road, Oakleigh EastLeased to 3 Bees Early Learning until 2025 with five-year options, the childcare centre has a licence for 47 places and sold for $$2.05 million, with a net income of $122,707pa plus outgoings and GST.

Land/Development Sale, 1 Vine Street, HeidelbergThe ready-to-build 807sqm corner site, zoned Residential Growth, sold for $2.4 million with pre-sales across part of the permitted 13-apartment project.

Office Sale, 5 Stewart Street, RichmondA local investor paid $4.1 million for the vacant 470sqm corner building. It is on a 235sqm site zoned Mixed Use and plans have been lodged for a residential extension, while there is development potential for a building of more than eight levels.

Office Sale, 979 Burke Road, CamberwellThe offices of the Australian Health Service Alliance, of 664sqm on a 628sqm site zoned Commercial 1, sold for $3.9 million with three years remaining on the lease.

Office Lease, 130 Lonsdale Street, MelbourneThe Australian Financial Complaints Authority has committed to 7,600sqm across levels 24 to 27 on a 12-year term within Charter Hall’s $700 million Wesley Place development. The 130 Lonsdale Street tower will rise 35-storeys and have 55,000sqm of office space.

Office Lease, 9 Queen Street, MelbourneCloud solutions firm Bourne Digital leased signed a 4x3-year lease over the 250sqm character basement within the heritage-listed Bennelong house. at $100,000pa plus GST from the Bennelong Foundation.

Industrial Sale, 140 Bernard Street, CheltenhamThe two-level 1,740sqm office, showroom and warehouse facility is on a 3,243sqm site with 25 car spaces and gated hardstand of 400sqm, and traded for $2.4 million.Industrial Sale, 1350-1352 North Road & 9-13 Fulton Street, OakleighBus company ComfortDelGro Coporation Australia Pty Ltd has paid $4.9 million for the 3,630sqm site that adjoins its existing depot. Across four separate titles, the Industrial 1-zoned property has 1,429sqm of buildings and three street frontages, and sold with short-term leases.

Eastern suburbs offices finishing 2018 strongly: Macau-based investors have paid $28.3 million for the Ringwood office development at 60-62 Maroondah Highway, fully pre-committed to the state government on a 12-year term, rounding out a busy year for Melbourne’s popular eastern suburban market which has attracted local and offshore interest.

It comes quickly after the $6.58 million sale of a modern two-level office building of 1,005sqm at 317-321 Whitehorse Road in Balwyn to an owner occupier, while a private investor paid $7 million for the partly-vacant refurbished 1,740sqm building at 417 Ferntree Gully Road in Mount Waverley.

Recent months have seen the VicRoads headquarters within the Tally Ho business park sell for $25.5 million to a China-based investor, while Hong Kong-listed Glorious Sun paid $28 million for 16 Lakeside Drive (also at Tally Ho) and 255 Whitehorse Road in Balwyn; News Corporation sold the 1 Chapel Street building in Blackburn, home of Leader Newspapers, for $30.2 million; and the converted Congregational Church building in Hawthorn changed hands for $9.85 million.

Collingwood commands further commercial development interest: V-Leader has acquired the 4,287sqm corner site at 128-144 Wellington Street for around $40 million, with intentions to build a 20,000sqm office and 200-room hotel project.

Currently within the city-fringe suburb, Grocon is constructing its Northumberland project that will have 15,000sqm of office space, while on Langridge Street Pace is developing a 10-storey commercial tower Tribe Hotel is looking to introduce a new offering.

Investors grab Coles assets: In separate deals this week, the Coles and Aldi-anchored Aurora Village shopping centre in Epping was sold by Coles Group for around $44 million, while a Coles supermarket in Hamilton in Victoria’s south-west traded for $23 million.

A mainland China investor acquired the 8,284sqm Epping centre at a circa-5.6 yield. On a 23,265sqm site over two titles, it has 16 specialty stores and a Coles Express service station with a combined $2.5 million return. Coles has a 15-year lease, and Aldi 10 years.

Coles Hamilton sold to a private investor with a 5.2% yield, with a 20-year lease to 2035 plus two 10-year options. Built in 2015, the 3,870sqm store includes a liquor outlet and is on an 11,584sqm site.

Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys.